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Kentucky Ag News Headlines |
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Big Sandy Water to Acquire Lockwood Estates System
Kentucky Ag Connection - 02/12/2016
The Kentucky Public Service Commission (PSC) has approved the sale of the privately owned Lockwood Estates water system in Boyd County to the Big Sandy Water District.
In an order, the PSC took note of a Kentucky statute favoring consolidation of water systems "whenever feasible." The PSC found that the transaction serves the public interest because it is likely to eliminate wasteful duplication, improve management, reduce
costs and provide better service.
The PSC also found that Big Sandy Water District has the financial, technical and managerial abilities to provide reasonable service, as required by Kentucky law.
Big Sandy Water serves about 4,635 customers in Boyd, Carter, Johnson and Lawrence counties. Lockwood Estates, which is owned by Overland Development, has 114 customers, all in a single subdivision and buys its water from the Big Sandy Water
District.
Terms of the sale require Big Sandy Water to make an initial payment of $50,000 to Overland Development. The remaining $50,000 will be paid in installments over the next five years. The PSC directed Big Sandy Water to establish two divisions, with
Lockwood Estates retaining its former rates and terms of service.
The PSC said that questions concerning whether Big Sandy Water can recover any part of the $100,000 purchase cost from its customers will be addressed whenever Big Sandy Water files its next request for a rate adjustment.
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